Uruguay :: Buying the Farm*

Uruguayan law welcomes rural foreign investment and no discrimination applys between uruguayans and foreigners. More than 16 million hectares are fit for agriculture and livestock purposes, representing the 93% of the whole country.  Foreigners may own rural land either personally or as shareholder of a corporation or limited liability partnership. This treatment is opposite to neighbour countries like Brazil, who differentiates among Brazilians and foreigners.

Six steps away from your next opportunity:

1) Real estate transactions in Uruguay require the participation of a public notary.

2) Once appointed by the buyer, the public notary is responsible for ensuring that all documents and permits are correct and that the investor acquires a clean title (i.e., confirming that there are no liens or mortgages, valid building permits and that there are no problems regarding the status of taxes and utilities on the land).

3) Generally, real estate transactions begin with the execution of a preliminary agreement with respect to the real estate, or also called a “Boleto de Reserva”, by which the seller “reserves” the property to the buyer.

4) The main intention of the Boleto de Reserva is to obtain, prior to definite purchase, all required documentation from the Public Registries in order to duly confirm that the property to be transferred has no liens and is up to date with all of the required documentation (legal and notary due diligence over the seller and the land).

5) Once the documentation has been obtained, the parties execute a definitive purchase, for the real estate. The definitive purchase provides the buyer with an owner’s rights and guarantees over the land.

6) The purchase deed is registered before the real estate public registry (Registro de la Propiedad Inmobiliaria).

*Jean Jacques Bragard

BRAGARD & DURÁN Attorneys at Law